Systematic Withdrawals
Aren’t for Everyone

People may spend decades diligently saving for retirement. But once it’s time to retire and start using that money, many fear watching their savings drain away. 

THE RETIREMENT INCOME CONUNDRUM

According to a recent study by the Employee Benefits Retirement Institute (EBRI), at least half of retirees restrict their spending to match their regular income (income that does not include sales of retirement plan assets).1

In fact, the same EBRI study showed that over 50% of retirees who started retirement with greater than $500,000 had 80% or more of their nest egg left after 18 years of retirement.1

Conclusion: A significant number of retirees may be uncomfortable with the concept of decumulating shares.

INCOME FOR RETIREMENT—THE POWER OF MONTHLY DIVIDENDS

For clients who aren’t comfortable seeing their share balance decline, Franklin Income Fund can be a viable alternative to a more traditional systematic withdrawal plan. The fund has paid uninterrupted dividends for more than 70 years and its 12-month yield has been 4% or higher since 1965.

Performance data represents past performance, which does not guarantee future results. Current performance may differ from figures shown. A fund’s investment return and principal value will change with market conditions, and investors may have a gain or a loss when they sell their shares. Please view Franklin Income Fund’s most recent month-end performance.

Dividends will vary depending on the fund’s income, and past distributions are not indicative of future trends.

An Added
Benefit

Retirees who are 70½ or older may be able to meet their Required Minimum Distribution (RMDs) through dividend payments rather than selling shares.

Franklin Income Fund

Franklin Income Fund seeks to maximize income, while maintaining prospects for capital appreciation over the long term by:

Seeking undervalued securities unconstrained by asset classes or market cycles

Pursuing income across the capital structure of a company using stocks, convertible securities and bonds

Adjusting fund allocations without set proportions based on current market opportunities

Average Annual Total Returns (For Periods Ended September 30, 2019)

1-year3-year5-year10-yearSince Inception
(8/31/48)
Advisor Class (FRIAX)2 4.65% 6.28% 3.98% 7.59% 10.10%
Class A (FKIQX)4          
Without Sales Charge 4.40% 6.06% 3.79% 7.41% 10.01%
With 4.25% Initial Sales Charge 0.49% 4.72% 3.00% 7.00% 9.95%
Total Annual Operating Expenses
Advisor Class 0.47%
Class A 0.72%
30-Day Standardized Yield As of September 30, 20195
Advisor Class 3.95%
Class A 3.55%

Performance data represents past performance, which does not guarantee future results. Current performance may differ from the figures shown. A fund’s investment return and principal value will change with market conditions, and investors may have a gain or a loss when they sell their shares. Please view Franklin Income Fund’s most recent month-end performance.

Advisor Class shares do not have sales charges or Rule 12b‐1 fees and are offered only to certain eligible investors as stated in the prospectus. The fund offers other share classes, subject to different fees and expenses that will affect their performance. Please see the fund’s prospectus for more information about fees and expenses.